McCourts Reach Divorce Settlement

The divorce of the couple that bought the Dodgers nearly eight years ago has finally been settled. Frank and Jamie McCourt confirmed that they have come to a financial agreement, according to the LA Times. Bill Shaikin of the Times, who first reported the settlement, reports that Jamie will obtain $130MM and relinquish any claim to a share of the Dodgers. She will no longer stand in the way of Frank's plan to sell the team's media rights.

As Shaikin notes, the agreement sets up a possible court showdown for the Dodgers between Bud Selig and Frank McCourt. The commissioner asked the Bankruptcy Court to order the Dodgers sold, but McCourt intends to keep the team, which he and Jamie purchased in 2004. The McCourts had reached a divorce settlement in June, but it was contingent on a TV deal with FOX that Selig rejected.

Despite the off-field distractions, Dodgers GM Ned Colletti has indicated that he's willing to spend to improve the offense as dramatically as possible. Prince Fielder and Albert Pujols could draw interest from the Dodgers, who could consider a long-term deal for Matt Kemp.

Comments

I think that could be said about all baseball fans. I’m a Yankees fan, and I know the Dodgers and Yankees don’t always get along but I was hoping this for to be over, because they are great franchise and hopefully now they can field a quality team.

According to a story in Tuesday’s LA Times, Frank has until spring to pay off the settlement or the team must be sold. Although the settlement puts Jamie on Frank’s side in arguing for the approval of the media contract extension with Fox, this doesn’t necessarily improve the chances of MLB agreeing to it, or of the Bankruptcy Court forcing MLB to approve it. The next hearing before the judge is coming up in a few days, so I think we’ll know pretty soon how this will unfold. Frank and Jamie, let my people go!

It’s a good thing. The sale of the team can proceed with one less principal involved, and with another clearly-defined debt the bankruptcy court can add to the tally when considering MLB’s request that the team be sold. Jamie is now a creditor instead of an owner. The sale of the franchise is now clearly the best and fastest way to settle the team’s debts.

Did I miss the part where he signed a check for $130m? We all know he can’t do that, without either getting the media deal (which can only happen if judge orders MLB to approve it), or if the team is sold (which will happen if the judge orders it). The judge seems far more likely to do the latter than the former.

cashflow…oh yea the team doesnt make any…so good luck at a sale..that will never happen….i do, however, think that this could be a step in the right direction if Frank is actually serious about running an MLB Franchise. However, im not quite sure where he is going to get the money to pay a big free-agent..after the new kemp deal he will be broke again

Allow me to air my assumption about Jamie… A run-of-the-mill corporate lawyer does not make $133 million over a fifteen-year career. Let’s just say she ain’t messin’ with no broke, broke…

Now let me tell you what I know for certain about Jamie… She represented to a court, through her attorneys, that she could not survive on less than $600,000 per month in spousal support. That’s more per month than the average middle-class person makes in 15 years. She actually requested $989,000 per month in alimony.

If I had to come up with one redeeming quality about Jamie McCourt, it would be that she has not yet been accused of leading a mass genocide.

Basically, the entire problem was that Jamie and Frank both had ownership of the team, conflicting interests and such. Now, with Frank the principal owner by essentially buying out Jamie, he can do as he wishes. Granted, that may not be a good thing… but at least it’s one voice and one direction rather than two owners holding the team hostage while battling for its custody.

It seems to me Frank bossed up and paid her through his own pocket, putting the team first and himself second.

I don’t think so. Frank can’t write Jamie a check for $130m, so she in effect becomes another creditor. The debt can only be satisfied out of Dodger revenue, either the extension of the Fox media deal (which MLB won’t approve) or the sale of the team. This is actually very nearly the same deal Frankenjamie made a few month ago, which was contingent on the Fox contract. It fell apart (as everyone expected) because Selig said no to the media contract. Essentially the only difference now (AFAIK) is that the settlement is unhitched from the media contract. This leaves Frank with no other obvious options that I can see to raise the money but a sale.

Isn’t it odd that this agreement happened so quick after reports of the Angels getting a big Fox TV deal in the shared market? I think Frank and Jaime finally realized that the TV deal could disappear and they could both lose the Dodgers and their cash cow….settling this now will allow Frank move forward w/ getting the team back from MLB….this is providing he proves that the $$$ going to Jaime doesn’t come from the future TV deal and only his personal holdings….MLB(Selig) may let him go a head and get a new TV deal BUT will still keep close tabs on the $$$ to make sure it is used for the club and not to fund his lawyers and divorce settlement…..

McCourt doesnt have $130 million in personal holdings. He signed over the property to Jamie previously and his only real property is Dodger Stadium and the surrounding property which is all tied up in bankruptcy court and can’t be touched.

Good, now please get McCourt out of LA. I am growing tired of seeing this headlines and it is just depressing that one of mlbs largest markets and most storied franchises has been unable to do anything.